Bloomberg Surveillance · Monday, June 29, 2026
The business models of hyperscalers are shifting from stable, cash-flow-generating entities to companies that may need to sell debt to fund operations. This change, coupled with market skepticism, is reflected in their equity prices and raises questions about the long-term sustainability of their current spending levels.
“You know, we used to talk about the hyperscalers as bond equivalents, right, throwing off cash stable businesses, very high margins, high free cash flow margins. We don't have that so much anymore, right, So you've got two or three of them, you know, actually selling debt, having to sell debt, not just equity, but debt. That's a very different business model. And that's what's happening on the equity price. It's just reflecting a different business model.”
“So I think it's most it's really in the hyperscalers because the question fundamentally is can the spending justify the businesses that are going to come out of this in the next three to four years. And so that's really you're seeing it in the equity market.”